Tag: international trade

Questions Related to international trade

The system of Eximscrips was introduced in ___________.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. 1980

  2. 1985

  3. 1991

  4. 1996

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Correct Option: C

The import licensing system was simplified with the introduction of ______.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. LERMS

  2. EXIM scrips

  3. EPZ

  4. EOU

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Correct Option: B

The EXIM Bank is owned by ________________.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. The Government of India

  2. World Bank

  3. International Monetary Fund

  4. Reserve Bank of India

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Correct Option: A

The Export and Import Bank of India was established in ___________.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. 1969

  2. 1972

  3. 1982

  4. 1992

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Correct Option: C

Which of the following documents is not required in connection with an import transaction?

commerce international trade types of foreign trade exports and imports import and export procedure

  1. Bill of Lading

  2. Shipping Bill

  3. Certificate of Origin

  4. Shipment Advice

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Correct Option: B
Explanation:

Shipping bill is a form used by Customs and Excise before goods can be exported from the country. It is the main document on the basis of which the customs office gives the permission to export. Hence shipping bill is used during export transaction and not during import transaction.

Which of the following do not form part of duty drawback scheme?

commerce international trade types of foreign trade exports and imports import and export procedure

  1. Refund of excise duties

  2. Refund of customs duties

  3. Refund of export duties

  4. Refund of income dock charges at the port of shipment

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Correct Option: D
Explanation:

Major duty drawbacks include refund of excess duties paid on goods meant for export, refund of custom duties paid on raw materials and machines imported for export production.

Which one of the following is not a document needed to fulfill the customs formalities?

commerce international trade types of foreign trade exports and imports import and export procedure

  1. Shipping bill

  2. Export licence

  3. Letter of insurance

  4. Performa invoice

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Correct Option: B
Explanation:

Export license is a document that grants the licensee the right to export a specific quantity of commodity to a specified country. Export license is not a document that is required to fulfill the custom duties.  

The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is ________.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. Letter of Hypothetication

  2. Letter of Credit

  3. Bill of Lading

  4. Bill of Exchange

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Correct Option: B
Explanation:

Letter of hypothetication written agreement, which authorizes a bank or lender to repossess and sell the pledged item in case of a default.

A letter of credit is a guarantee issued by the importer's bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter.
A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment.It is a conclusive receipt, i.e. an acknowledgement that the goods have been loaded; and it contains or evidences the terms of the contract.
A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on demand. Bills of exchange are primarily used in international trade.

In the later stages of development, __________ imports will be high.

commerce international trade types of foreign trade exports and imports import and export procedure

  1. capital technological

  2. maintenance

  3. both (a) and (b)

  4. neither (a) nor (b)

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Correct Option: B